Taxes Consolidation Act 1997 section 372AS

Determination of expenditure incurred in qualifying period, and date expenditure treated as incurred for relief purposes

Section 372AS determines when and to what extent expenditure on qualifying premises is treated as incurred during the qualifying period, and provides for graduated reductions in eligible expenditure from 2007 onwards.

• Expenditure is only treated as incurred in the qualifying period to the extent it is attributable to work actually carried out during that period, with reductions of 25% for 2007 and 50% for the period January to July 2008.
• Site development costs and land development expenditure are subject to the same rules as construction, conversion or refurbishment expenditure.
• Where a building straddles the boundary of a qualifying area, expenditure is apportioned between the parts inside and outside the boundary on the basis of floor area.
• For relief purposes, expenditure is deemed incurred on the date of first letting (rented premises), the start of the relevant period (refurbishment), or the date of first use as a dwelling (owner-occupier premises).